Syllabus Fundamentals of Economics - (CW3301) UNIT I INTRODUCTION TO MICRO ECONOMICS Introduction to Economics - Themes of Economics - Micro Vs Macro Economics - Demand curves and supply curves - Elasticity of Demand - Elasticity of Supply - Demand Curves of Households and firms. (Chapter - 1) UNIT II WELFARE ANALYSIS Consumers and Producers Surplus - Price Ceilings and Price Floors; Consumer Behavior - Axioms of Choice-Budget Constraints and Indifference Curves; Consumers Equilibrium Effects of a Price Change, Income and Substitution Effects Derivation of a Demand Curve. (Chapter - 2) UNIT III PRODUCTION AND COST FUNCTION Theory of Production - Production Function and Isoquants - Cost Minimization; Cost Curves - Total, Average and Marginal Costs - Long Run and Short Run Costs; Equilibrium of a Firm under Perfect Competition; Monopoly and Monopolistic Competition. (Chapter - 3) UNIT IV MACRO ECONOMICS National Income and its Components - GNP, NNP, GDP, NDP Consumption Function; Investment; Simple Keynesian Model of Income Determination and the Keynesian Multiplier; Government Sector - Taxes and Subsidies; External Sector - Exports and Imports; Money -Definitions; Demand for Money Transaction and Speculative Demand; Supply of Money - Banks Credit Creation Multiplier; Integrating Money and Commodity Markets - IS, LM Model. (Chapter - 4) UNIT V BUSINESS CYCLES AND STABILIZATION Monetary and Fiscal Policy - Central Bank and the Government; the Classical Paradigm - Price and Wage Rigidities - Voluntary and Involuntary Unemployment. (Chapter - 5)
